Canada has made a formal request to the U.S. asking it to offer an American-built fleet of surveillance aircraft in a deal that could involve spending upwards of $9 billion. The Canadian Forces had planned a competition starting next year to replace the Royal Canadian Air Force’s CP-140 Aurora aircraft. That program, dubbed the Canadian Multi-Mission Aircraft Project, had outlined the acceptance of bids in 2027.
The Quebec-based aerospace firm Bombardier had planned to bid on the project, pitching a proposal to build the planes in the Toronto area. U.S. aerospace giant Boeing also intended on bidding.
But on Monday, Public Services and Procurement Canada confirmed that it has issued a letter of request to the U.S. government about the Boeing P-8 aircraft. “With a view to exploring this option in more detail, Canada has recently submitted a Letter of Request through the United States government’s Foreign Military Sales program outlining Canada’s requirements and requesting an offer,” PSPC noted on its website. “These requirements include up to 16 P-8A Poseidon aircraft and associated equipment and initial servicing, as well as access to intellectual property and technical data.”
PSPC states that the request “does not commit Canada to purchasing the P-8A Poseidon and the project remains in Options Analysis. The final decision will be based on the capability offered, availability, pricing and benefits to Canadian industry.”
Bombardier still intends to put in a bid if the Liberal government decides it will hold a competition.
This newspaper first reported in December about Defence Minister Anita Anand’s push to buy the Boeing aircraft to replace the CP-140 Auroras.
Boeing told Canada that its P-8 Poseidon production line in the U.S. could be shut down by 2025 if additional orders aren’t placed. It made the unsolicited pitch to Anand several months ago for Canada to do an immediate sole-source purchase of P-8s.
The P-8 is in service with the U.S. Navy, Indian Navy, Royal Australian Air Force, Royal Air Force, Royal Norwegian Air Force, Royal New Zealand Air Force, Republic of Korea Navy and Germany Navy.
The U.S. government has been pressuring Canada to boost defence spending, in particular, acquiring more American-built equipment.
In response, Anand has been highlighting Canada’s ongoing military equipment projects to U.S. lawmakers, noting that Canada is buying the U.S.-built F-35 stealth fighter and will spend tens of billions on joint U.S.-Canadian radar systems and defences. In addition, many of the armaments and ammunition Canada is providing to Ukraine come from U.S. industry via the American government.
Anand has faced pushback from some Canadian firms arguing she is more interested in creating American jobs than building up the domestic aerospace and defence industries.
During a recent visit to Washington, Anand and Industry Minister Franois-Philippe Champagne sat with Boeing officials. Anand tweeted about the Feb. 9 meeting, pointing out the discussion centred on how “we can advance the integration of our continental Defence Industrial Base, and create jobs and growth for Canadians. We continue to work with industry to deliver modern equipment to the Canadian Forces.”
Bombardier has its own surveillance aircraft, which it has sold to a number of nations. It wanted that plane to be considered for the Aurora replacement.
Bombardier president ric Martel had been trying to raise concerns with the Liberal government for more than two months about the P-8 proposal. “As President and CEO of Bombardier, I want to publicly share my concern that Canada, which is facing an important choice about the airborne surveillance of its vast borders, may be considering awarding a sole-source contract directly to Boeing,” Martel said in December.
During a defence conference in Toronto in February, Martel said he still hadn’t received an answer from the Liberal government about whether they would proceed with a sole source P-8 proposal. “It will be their decision,” Martel said. “But they are going to have to explain why we weren’t part of the process when our platform is successful in a lot of other countries.”
Martel has argued that “a Canadian-built option should, and must, be considered on equal footing with those of foreign companies who have, in the past, directly attacked our home-grown aircraft programs.”
That last dig was directly aimed at Boeing, which was involved in a 2018 trade dispute with Canada and Bombardier over commercial aircraft.
Boeing spokesperson Marcia Costley has pointed out that the range, speed and endurance of the P-8 made it the ideal aircraft to monitor Canada’s northern and maritime approaches. She added that the P-8 would ensure allied interoperability to meet Canada’s security commitments and contribute to the country’s economic growth.
The Aurora fleet is being upgraded with new technology and that program is expected to be completed next year.